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Topic: Advice Needed Please (Read 721 times)

HelloI got myself into debt about 5years ago due to my business not making enough money to keep paying my outgoingsSo i got pay plan involved. I was paying £200 a month for the first two years then found it a struggle so i had the payments reduced to £150.00. Early this year things were tight and i was struggling due to lack of work being a computer engineerI recieved a credit card by post which i started using to keep my outgoings been paid but the credit card company are charging me £85.00 interest on £2500 and i pay them 115.00 a month.I have started a short term contract but i am conserned that my debt which stands at £16.00O and also £10.00O secure loan is taking all my income I AM ON A DEBT MANAGEMENT PLAN WHICH ISNT WORKING.I have thought of a IVA but my income goes up and down or even bankruptcy but i am worried what this will do to my businessI also own my house which is on a interest only at present and is worth about £100.000 with a mortgage of £82.000I also need a van for work as my old van needs a new engine so i am in a real mess and i need some advice

have you considered adding the credit card to the debt management plan that you are currently on to see if this helps as this will be then included into the debt management plan and hopefully the interest and charges frozen.

you may still be able to look into an IVA however you will need to have your income and expenditure assessed correctly as they may be able to take an average depending on the reason for fluctuation.

i personally would advise against bankruptcy especially if you are a sole trader

As genie said, one initial option is to add the new credit card to your DMP. I understand that you are with Payplan and sometimes they can get a bit funny if you have taken additional credit. However, if so you can speak to a different debt management company about them taking over your DMP for you.

Having said that, given your total debt is around £16,000 it is going to take 9 plus years to pay off using a DMP so it is sensible to consider the alternatives. If your income is not sutainable than an IVA is probably not for you.

Bankruptcy might well be an option to consider as if you are sole trader it will have little affect your ability to run your business. However, if your valuation of your property is accurate, then this could be at risk in bankruptcy.

Overall, I think you would be best advised to speak to Payplan and see if they will add your credit card to your plan. However, you should also have a chat to an independent debt advisor. Bankruptcy might still be an option if you have over estimated the value of your home....